Regardless of the forces challenging your practice, accounting firms continue to pay a premium to attract and retain talent, and with top talent in such short supply, many companies are worried – and for good reason.
Don’t think you’re challenged? Well, is your turnover rate making your head spin? Are you witnessing a mass exodus of your more mature, experienced employees? Are IT and compliance pressures stretching your already taut resources?
According to a recent global study from the ADP Research Institute (ADPRI) titled “Evolution of Work 2.0: The ‘Me’ Versus ‘We’ Mindset,” 56 percent of employees don’t believe in job security. The study also found that 46 percent of employees would consider a job that paid the same or less, and that a 16 percent raise is all the average employee would need to jump ship.
It doesn’t stop there. What’s even more striking is the fact that many employers maintain a skewed perception of where their workforce stands in terms of potentially switching jobs. The study showed that employers think that only 21 percent of employees are passively looking for another position when, in fact, 42 percent of employees are looking for opportunities elsewhere.
These statistics spotlight a growing disconnect between employer perception and employee reality in the workplace, which is contributing to an already startling talent drain. Employees are looking for engagement – opportunities for advancing in their jobs – while employers are focusing on the bigger picture like brand reputation, long-term performance, and the bottom line. We call this employee-employer friction the “me” versus “we” mindset.
So, what does all of this mean for accounting and auditing practices?
For starters, it means employers need to recognize that attracting and retaining talent is getting harder due to an abundance of opportunity for accounting professionals. Accounting and auditing will be among the fastest-growing occupations through 2018, and those professions are expected to continue to grow at a rate of 11 percent through 2024, according to the Bureau of Labor Statistics. And according to the ADP Workforce Vitality Report, job switchers in professional services see an average 6.2 percent increase in wages.
To access all of the content on our site, register (it's free!) or login to your existing account.
BONUS: If you register now you can opt to receive a digital copy of "Transform" , Richard Francis' new book for growing firms when it's available on March 30th.
About Dr. Ahu Yildirmaz
Dr. Ahu Yildirmaz leads the ADP Research Institute, a specialized group within ADP that provides insights to leaders in both the private and public sectors.